VSNL's net profits have dropped by 21.33 per cent to Rs 1.42 billion for the quarter ended December 31, 2004 compared with Rs 1.8 billion in the corresponding quarter of the previous year. However, net sales rose 6.9 per cent to Rs 8.27 billion against Rs 7.73 billion during the quarter ended December 2003. The company's total expenditure during the quarter under consideration rose by 3 per cent to Rs 6.68 billion against Rs 6.46 billion in the previous year.

VSNL's total income during the quarter under review stood at Rs 8.49 billion as compared to Rs 8.07 billion in the previous quarter ended September 2004. L